State Street : Investor Confidence Falls in October by 8.8 Points to 115.1

BOSTON - State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for October 2014. 

The Global ICI decreased to 115.1 in October, down 8.8 points from September's revised reading of 123.9. Investors in Europe showed lower risk appetite, with the European ICI falling 24.3 points to 115.5. In North America, by contrast, the ICI rose 5.9 points to 108.5. The Asian ICI rose by 2.1 points to 99.5.

The Investor Confidence Index was developed by Kenneth Froot and Paul O'Connell at State Street Associates, State Street Global Exchange's research and advisory services business. It measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.

"European investor confidence had crested in September at an all-time high, so it is perhaps not surprising to see it come down somewhat this month," commented Froot. "The decline may be driven by deflationary fears in the region. Although the ECB has engaged in covered-bond purchases, German opposition to full-blown Quantitative Easing may have left investors wondering whether or not the European Central Bank can do enough to combat headwinds to growth."

"The correction in global investor confidence occurred in spite of a rise in the US." said Michael Metcalfe, senior vice president and head of global macro strategy, State Street Global Markets. "This highlights the importance of weakness outside of the US as the main causes of the recent turbulence in financial markets."

About the State Street Investor Confidence Index®

The index is released globally at 10 a.m. Eastern time in Boston on the last Tuesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/investorconfidenceindex/index.html

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $28.47 trillion in assets under custody and administration and $2.42 trillion* in assets under management as of September 30, 2014, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street's web site at www.statestreet.com.

*Assets under management include the assets of the SPDR® Gold ETF (approximately $30 billion as of September 30, 2014), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

The views expressed in this material are the views of State Street through the period ended October 28, 2014 and are subject to change based on market and other conditions.

This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those set forth in State Street's 2013 annual report and subsequent SEC filings.  State Street encourages investors to read the corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, October 28, 2014, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

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